92000E2400

WRITTEN QUESTION E-2400/00

by Mauro Nobilia (UEN) to the Commission

(18 July 2000)

Subject: Telecom Italia SpA

Considering that:

- in March 2000 the company Telecom Italia SpA opened the procedure for using the income support fund (cassa integrazione) to lay off and redeploy 7500 of its employees;

- these social support payments are made by a public welfare body, and thus by the state;

- Telecom Italia SpA is a private company in which the Italian state has a major shareholding;

- until recently the company has benefited from funding from the ERDF (European Regional Development Fund) which has been used for the preparation and construction of numerous infrastructures including network modernisation and cabling;

- it has also received funding from the ESF (European Social Fund) to set up various vocational training centres.

Will the Commission say:

- whether the above information is true?

- will it ascertain whether the opening of this procedure, which is shortly to be implemented, is in breach of the rules and principles governing the use of Community structural funds in that the latter are designed to create jobs or at least maintain employment?

- will it take steps, if necessary, to ensure that when considering future requests for Community funds from Telecom Italia SpA, due account is taken of the fact that the company seems to have paid no heed whatsoever to the goals of increasing and maintaining employment.

Answer given by Mrs Diamantopoulou on behalf of the Commission

(9 October 2000)

On a general level, the Commission regrets that the restructuring of Telecom Italia S.p.A. has resulted in such a large number of workers being laid off, affecting not just the 7 500 workers themselves,

but also their families. While we have to accept that labour mobility is now a permanent feature of our economy, we still have to know how to manage it, in order to limit the damage to workers. It also has to be remembered that individual cases of businesses undergoing restructuring can only be dealt with at national level.

The Commission confirms that there is a Telecommunications operational programme under Objective 1 (Mezzogiorno) for the period 1994-1999, receiving funding from the European Regional Development Fund (ERDF) of 376 million of a total investment of 1 154 million. It should be remembered that the Community aid mentioned was intended for the regional development of the Mezzogiorno, which had fallen a long way behind in terms of telecommunications infrastructure.

According to the information received from the Member State, Telecom received approximately 0,4 million from the European Social Fund for its activities in the Mezzogiorno.

The awarding of this aid was wholly in compliance with the existing rules.

As regards the new programming period (2000-2006), the Community support framework (CSF) for the Mezzogiorno region, approved by the Commission on 1 August 2000, does not provide for direct financing for Telecom Italia nor to any other telecommunications companies.

Furthermore, the CSF will no longer finance basic networks or investments in mobile and fixed telephone infrastructure. However, investment in telecommunications infrastructure and networks may be co-financed in accordance with the conditions set out in the Commission's technical document Information society and regional development. ERDF Interventions 2000-2006. Criteria for programme assessment, a copy of which has been forwarded to the Honourable Member and the Secretariat-General of the Parliament.

In any event, Community and national legislation in the field of competition must be respected.